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Exam 14: Business Tax Credits and Corporate Alternative Minimum Tax

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Question 61

True/False

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The disabled access credit was enacted to encourage small businesses to make their businesses more accessible to disabled individuals.

A) True
B) False

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Question 62

Multiple Choice

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Lemon,Inc.,has the following items related to the AMT: $\begin{array}{ll}\text { Alternative minimum tax base } & \$ 10,275,500 \\\text { Regular corporate tax } & 1,112,500 \\\text { Foreign AMT tax credit } & 187,020 \\\text { Cost of gonds sold } & 2,260,020\end{array}$ The corporation's AMT,if any,is:

A) $0.
B) $755,580.
C) $1,868,080.
D) $2,055,100.
E) None of the above.

F) None of the above
G) A) and E)

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Question 63

Multiple Choice

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Omar acquires used 7-year personal property for $100,000 to use in his business in February 2013.Omar does not elect § 179 expensing,but does take the maximum regular cost recovery deduction.He elects not to take additional first-year depreciation.As a result,Omar will have a positive AMT adjustment in 2013 of what amount?

The work opportunity tax credit is available only for wages paid to qualifying individuals during their first year of employment.

Several years ago,Sarah purchased a structure for $150,000 that was originally placed in service in 1929.In the current year,she incurred qualifying rehabilitation expenditures of $200,000.The amount of the tax credit for rehabilitation expenditures,and the amount by which the building's basis for cost recovery would increase as a result of the rehabilitation expenditures are the following amounts:

Evan is a contractor who constructs both commercial and residential buildings.Even though some of the contracts could qualify for the use of the completed contract method,Evan decides to use the percentage of the completion method for all of his contracts.Unfortunately,this will have the effect of increasing Evan's AMT adjustment associated with long-term contracts for the current year.